Wednesday - 4th September 2019 - AGM PRESENTATION - FY Ending 31st March 2019 SRT MARINE SYSTEMS PLC - SRT ...
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AGM PRESENTATION – FY Ending 31 st March 2019
Wednesday - 4th September 2019
SRT MARINE SYSTEMS PLC www.srt-marine.com
© SRT Marine Systems PLC
OUR BUSINESS
SECURITY | SAFETY | MANAGEMENT | ENVIRONMENT
Provision of products and systems that deliver maritime domain awareness
(MDA) to vessel operators, infrastructure owners and government agencies
© SRT Marine Systems PLC
MARKET
GLOBAL OPPORTUNITY STRONG DRIVERS
▪ 26m vessels – 8m commercial, 18m leisure ▪ Safety
▪ 361m sq km of ocean
▪ 400,000 km coast lines ▪ Social
▪ Ports & waterways ▪ Commercial
▪ Infrastructure – oil & gas, wind turbines
▪ Buoys – navigation, monitoring ▪ Environment
▪ Security
New technologies and increasing awareness and relevance of
the maritime domain is creating a significant global market
© SRT Marine Systems PLC
SRT TARGET MARKET SEGMENTS
|COAST GUARDS |FISHERIES
|LEISURE & COMMERCIAL |ENVIRONMENT
© SRT Marine Systems PLC
SRT MARKET POSITION
▪ Proven range of products with
differentiated functionality.
▪ Global network of partners and
resellers.
▪ Trusted and established global
brand.
▪ Operational resources to scale
and meet demand.
© SRT Marine Systems PLC
MARKET & PRODUCTS
TRANSCEIVERS SYSTEMS
AIS AtoN Turn-key integrated maritime surveillance,
AIS anti-collision
transceivers and tracking, management and command and
and identification
monitoring control systems
transceivers
systems & sensors
|LEISURE & COM |ENVIRONMENT |COAST GUARDS |FISHERIES
© SRT Marine Systems PLC
FINANCE - OVERVIEW
Revenues ➢ Significant growth in revenues and profits
➢ Transceiver business growth of 19% to
contribute £6.0m of revenues
£6.0 ➢ Systems business contributed £14.6m of
revenues
➢ Gross profit margin of 45%
£14.6
➢ Raw cash overhead of £6.6m – an 8% year on
year increase
➢ Year end cash of £3.9m with debt of £5.0m and
Transceivers Systems receivables of £18.0m
➢ Profit before tax of £3.2m
© SRT Marine Systems PLC
FINANCE – OVERVIEW
£000’s FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19
Revenues 8,522 10,684 11,026 5,331 20,559
Gross Profit 4,353 5,168 7,239 2,305 9,329
Admin Costs 4,687 4,848 5,961 6,469 5,877
Operating Profit (334) 320 1,278 (4,163) 3,452
© SRT Marine Systems PLC
FINANCE - OVERVIEW
WORKING CAPITAL:
▪ Year end cash balance was £3.9m
▪ £10m loan note program in place with £5.0m drawn down on a 3 year
term basis.
▪ Equity fundraises of £7m during the year.
▪ System contracts structured to be cash positive.
© SRT Marine Systems PLC
TRANSCEIVER BUSINESS
© SRT Marine Systems PLCTRANSCEIVER BUSINESS
▪ Standard AIS transceivers for commercial and leisure vessel owners globally.
▪ SRT OEM & Module – provides product solution for marine electronics
brands.
▪ Em-trak – network of marine electronic dealers and direct web sales to end
users.
▪ New products, greater adoption and increased marketing to drive sales
growth.
▪ Growth opportunities with products such as Buoy-Tracker for fishing buoys –
tender tracking for larger private vessels – encrypted devices for blue-light
applications
© SRT Marine Systems PLCSYSTEMS BUSINESS
TURN-KEY SUPPLY & INSTALLATION OF THE SRT ‘MDA-SYSTEM’
SOFTWARE | HARDWARE | DATA
© SRT Marine Systems PLCSYSTEMS BUSINESS
▪ SRT developed vessel transceivers, coast stations and GeoVS operating
software
▪ Third party hardware such as radar, PC’s, servers
▪ Satellite monitoring data – AIS, Radar, Optical
© SRT Marine Systems PLCSYSTEMS PROCESS
Technical Data &
Procurement Contracting Installation
Consultation services
© SRT Marine Systems PLCSYSTEMS PIPELINE SUMMARY
Contracted
£39m
Near term system opportunities +£220m
Total validated systems opportunity pipeline +£414m
Multi-Billion Dollar Global MDA Market
© SRT Marine Systems PLCBFAR, PHILIPPINES IMEMS PHASE II CONTRACT
Dec 2018
CONTRACT DATE
£32m
CONTRACT VALUE
4yrs
DELIVERY PERIOD
£14m
MILESTONES 2018/19
£15m
MILESTONES 2019/20
5,000 Boats 2 Data Centres £1m pa
132 Coast Stations 17 Monitoring Centres DATA REVENUE
PROJECT PROGRESSING – EQUIPMENT AND TRAINING MILESTONES DELIVERED
© SRT Marine Systems PLCBFAR, PHILIPPINES IMEMS PHASE II CONTRACT
First monitoring centre installed in December 2018
© SRT Marine Systems PLCSYSTEM OPPORTUNITIES
▪ Significant and growing validated pipeline of system opportunities around
the world valued at over £400m, of which ~ £220m are in their final stages
prior to contracting.
▪ ASIA: Near term system contract opportunities worth an aggregate of up to
~ £150m. Coast Guard and Fisheries.
▪ MIDDLE EAST: Near term system contract opportunities worth an aggregate
of up to ~ £70m. Coast Guard.
▪ Each project has a different deployment and thus revenue pattern.
Implementation varies from under one year to up to 3 years.
First monitoring centre installed in December 2018
Due to the nature of government contracts, the exact value and timescales of sales cycles and contracts are entirely out of the control of SRT and liable to change and or cancelation without notice
© SRT Marine Systems PLCSUMMARY
SRT System – The Philippines
| POSITIONED AND PREPARED FOR CONTINUED GROWTH|
© SRT Marine Systems PLCRISK FACTORS
◆ Projects can be subject to delay and significant variability – changes in client personnel, budgets,
specifications, financing arrangements etc. Forecasting is very challenging and inherently inaccurate
◆ Contracts with foreign government entities are highly variable and can be unilaterally changed and cancelled
with no possibility of recourse and or compensation
◆ SRT revenue profile is lumpy whereby project deliverables may fall either side of a reporting line causing
significant financial performance variances between reporting periods
◆ Long lead times on transceivers of up to six months can mean overstocking if demand is variable
◆ AIS is an open standard so anyone with the financial and technical resource may develop a product
◆ AIS is a complex radio communications technology so challenges can arise with products resulting in significant
warranty costs
◆ As SRT enters multiple project contracts, project execution risk will become an increasing challenge
◆ The global MDA market is highly fragmented and market data often variable and incomplete and thus market
size, trend and timing data may be significantly inaccurate
© SRT Marine Systems PLCDisclaimer
◆ This presentation contains forward‐looking statements and market information which
may relate to the future financial performance of SRT Marine Systems plc. All such
statements made in this presentation are based on current expectations, available
information and estimates based in part, on assumptions made by management and
involve certain risks and uncertainties. Actual results could materially differ due to
unexpected and sudden changes and investors should not rely upon the accuracy of any
information contained herein. Investors should undertake their own research to validate
or otherwise any statements made herein prior to making any investment. SRT plc does
not undertake any obligation to update any forward‐looking statement to reflect events
or circumstances after the date of this presentation, or for changes made to this
document by external parties.
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